Jakarta Bay developers want official go-ahead for project

JAKARTA (JP): Some developers joining the ongoing reclamation project, which covers 2,700 hectares in Jakarta Bay, asked yesterday for legal assurance that the project will continue.

A representative of PT Manggala Krida Yudha (MKY) said his company had been encountering an overlap in the project's supervision since it joined the venture.

"Before the issuance of Presidential Decree No. 52/1995, which states the supervision and control of the reclamation project is in the hands of the city administration, an overlap emerged among some of the ministries involved in this project," an executive of MKY, who asked for anonymity, told The Jakarta Post.

"But our intention is to make things work among all parties involved. That is why we signed an agreement with both sides -- the state-owned port management company, PT Pelindo II, as a representative of the Ministry of Transportation, and BP Pantura (Jakarta Bay Supervision Board) for the municipality," he said.

The city councilors have urged the Ministry of Transportation to hand over the control and supervision of the project to the city administration to speed up construction.

Based on the presidential decree, the municipality has the legal support of a "superior law" to run the project, the councilors said.

However, some developers have signed agreements with the Ministry of Transportation, which oversees waters near the Tanjung Priok Port, through Pelindo II.

"We made a deal with Pelindo II before the presidential decree was issued," the executive said.

"Why? Because according to the existing rules jointly signed by three ministries in 1972, the sea on which our project (Ancol Baru) is developed, is part of the Ministry of Transportation's authority."

MKY has been allowed to reclaim 500 hectares under the project and will manage 375 hectares while its partner, Pelindo II, has control of the remaining 125 hectares.

"(The councilors) cannot just order us to cancel the agreement with Pelindo II," he said. "Is everything canceled just because there is a higher law, without caring about what was done earlier?

"We (the developers) need legal assurance because this problem will affect the reclamation project in the future," he said.

MKY also signed a development agreement with BP Pantura last month regarding its obligation to build social and public facilities within its 375-hectare plot.

The MKY executive said BP Pantura was a new institution -- established in 1995 -- so it was having some difficulty adjusting to the other related parties that have been involved in the project for longer.

"In fact, it is hard even to meet officials of BP Pantura, who are mostly new and not as professional as, for instance, officials of Pelindo II, who have experience in managing the Jakarta Bay area.

"The board is practically left with nothing to do. Land use, for example, is managed by the National Land Agency (BPN), while the sea is managed by the Ministry of Transportation.

"So there should be clearer authority and consolidation," he said. "Don't just sacrifice the existing agreements because the municipality wants to increase its authority."

An executive of another developer, which reclaims a western part of the bay, said yesterday that his company was also encountering difficulties because of the overlapping.

"We're confused. Actually, who is in charge of what? We are just businessmen who are trying to complete our project. I hope (the ministry and the municipality) will settle this matter soon, so we can continue the project," he said.

He said the bay's reclamation was not a cheap project and urged parties and institutions involved not to be arrogant.

"It needs good coordination among the parties to make the project work," he said.

The developers are reportedly waiting for a final decision from the government to settle the dispute. (07)